The Words of Linda

 What is the value of financial information and financial analysis? The goal of financial analysis is to evaluate the degree to which a company ’ s financial information captures its underlying business reality. In other words, financial analyses use to assess the performance of a company in the context of goals and strategy. Financial analysis is a valuable activity. It is not only determines the competitive advantage of a company, but also identifies red flags or potential fraud of financial statement. However, the results from analysis only let us draw conclusions about how a company has developed thus far. The figures and ratios that we obtain do give us an overview, but figures are not everything. Financial data and non-financial data need to be interacted to forecast events, optimise operations and determine strategy . Therefore, a company's strategy and business model need to be known first in order to interpret the financial ratios and then uses the financial ratios an

With so many chan ges on companies’ operations, proc esses, and controls make audit environment much more different than it was in the days before COVID-19 pandemic. In the current environment, fraud risk may be heightened for fraudulent financial reporting.  In general terms, fraud is an intentional act by one or more individuals involving the use of deception to obtain an unjust or illegal advantage. Auditing is a term many are familiar with.  Auditing includes process to plan the audit, conduct risk assessment, identify and test internal controls and then collect sufficient and appropriate audit evidence and finally report on the findings of the audit. During the audit process, a uditing of financial statements may detect symptoms of fraud. However, auditors have no responsibility to plan and perform audit procedures to detect immaterial misstatements including those caused by error and fraud.  Allegations of fraud that are often being resolved through court action suggest the